Pfizer's new manufacturing facility in Dalian. The company is looking to expand R&D away from expensive coastal cities. (Xinhua)
By Zhou Yan (China Daily) – Besieged by the ballooning cost of talent in China’s coastal regions, some multinational companies are traveling to untapped inland cities for equally skilled, but less expensive brainpower.
As the world’s largest pharmaceutical firm, Pfizer Inc has blazed a trail in moving westward with plans to set up a new research and development (R&D) center in Wuhan, Hubei province, in central China to support Pfizer’s global R&D projects.
The US-based drug maker signed a Memorandum of Understanding on Nov 25 with the local government to build the new operation at Wuhan National Bioindustry Base.
This makes Pfizer the first global pharmaceutical company to establish a presence in the area. The company did not disclose the amount of its investment in the project.
“Pfizer is setting up this R&D center in Wuhan primarily because of the city’s solid research foundation and rich pool of talent,” said Tan Lingshi, general manager of Pfizer (China) Research & Development Co, based in Shanghai.
Pfizer plans to recruit about 200 people for the new inland R&D center in the next three years, depending on operating conditions.
The pharmaceutical giant has more than 360 employees at its Shanghai R&D center that was set up in 2005.
“I was very impressed by the caliber of talent in the city, which is home to more than 1 million college students,” Tan said, adding that the city’s research foundation, including hospitals and research institutes, are very strong.
“The cost of skilled people is significantly lower than that in Shanghai. However, the quality of talent is almost the same in terms of English language and research skills,” Tan said. “It’s the major driver behind our presence in Wuhan.”
After Premier Wen Jiabao adopted the “Rise of Central Region” strategy in 2004 to promote development throughout central China, the inland region’s education systems and infrastructure for investment dramatically improved.
“The Wuhan center will be an integral part of Pfizer’s global R&D operations while being closely aligned with the Chinese government’s strategy on biopharmaceutical industry development in the region,” said Allan Gabor, regional president of Pfizer North Asia.
Since China’s reform and opening-up began, foreign attention has been focused on a small number of universities in the coastal region, said Calla Wiemer, a visiting scholar at the University of California’s Center for Chinese Studies in the United States.
“With so many Chinese young people now attending college, China can support excellence to a much greater degree within its university system,” Wiemer said. – read more at ChinaDaily.com…
